By Nicholas Hall
There is quite a bit for a family to consider when thinking about saving for their children’s college fund. By 2020, you'll need an estimated $225,000 to put Junior through a private college or $105,000 for a public university. With that being said, it is fairly obvious that planning early and creating a good investment portfolio are essentials for every family looking to put their children through college. The first tip is to do you research. You need to figure out how much you will need to save and by what time will you need the money based off number of children and their ages. There are a number of different types of loans, plans, bonds, and accounts that make this a much easier process as long as you know what you need. The IRS also offers a 529 plan that allows you extra savings and tax benefits on college plans. Tip number 2 is that a little extra couldn’t hurt. Always look for ways to add to your child’s college account, this could be anything from baby showers to just cutting unnecessary costs. Tip number 3 is to make sure you diversify any risky investments and select the method that makes the most sense for your individual situation. Finally, don’t pay for your child’s college at the expense of your own retirement and remember that there are always grants and loans that can make up the missing amounts. The best way to ensure a favorable outcome is to start to save as early and possible and be smart with your investments.
Sources:
http://www.savingforcollege.com/intro_to_529s/what-is-a-529-plan.php
College is alot of money and parents should start saving as early as possible.
ReplyDeleteScarlett Lu